ORGANISATIONAL STRUCTURE

● This refers to the way the business is organised to achieve maximum

efficiency.
● It involves rules, procedures and staff position including the structure of each
departments that are necessary to conduct different aspects of the business.
CHAIN OF COMMAND
● This refers to the system used by management to transfer a message from one
person to another.
● Many companies are organized in the form of a pyramid where the person at the
top has the most authority.
● Each person in the pyramid is responsible to the person immediately above.
● It shows the lines of communication between persons in the supervisory
position and his/her subordinates.
● Each manager delegates work to the people below him.

SPAN OF CONTROL

● This refers to the number of subordinates a manager supervises.

● The effective number of others that a manager can supervise effectively.
● Factors that influence the span of control of management
1) The complexity of the work – some work is easy to check while others
demand closer supervision by the manager.
2) Self-discipline of the workers - workers who are self-motivated and have a
professional approach a greater amount can be supervised.

1 | Page
 3) Method of communication – some methods of communication are more
demanding that others for example face to face meeting as compared to
email.
4) Frequency of supervision – the more frequent that a manager needs to see
subordinates the more limited will be the span of control.
5) Capability of the manager – some managers have more ability to motivate
and lead than others.
● Types of span of control
1) Wide span of control - the workers do not need close supervision.
2) Narrow span of control – there is a need for closer supervision; more
people are in supervisory positions.

ORGANIZATIONAL CHARTS

● Four types of formal organisation structure.

1. LINE ORGANISATION
This is a traditional form of organisation which involves a direct flow
of authority, and responsibility is dispersed and delegated from the top
to bottom.

2. LINE AND STAFF ORGANISATION

The line and staff organisation is a mixture of the line organisation
and the functional organisation, and is common to many big
international companies today.

3. FUNCTIONAL ORGANISATION
In the functional organisation, work is divided so as to be done
exclusively by those who are most specialised at it. The idea is that
this should increase the efficiency of production of the company’s
goods or service.

2 | Page
 4. COMMITTEE ORGANISATION
The committee organisation is based on the management principle of
grouping specialists in committees to advise the executive and to
assist it in developing policies and procedures.

3 | Page